SC Lowy Financial HK is aiming to raise $500m for its third private credit fund, capitalising on a financing gap left by Asia’s shrinking junk bond market and increasingly cautious banks, according to a report by Bloomberg.
The reports cites Co-Founder and Chief Investment Officer Soocheon Lee as revealing that the fund is targeting net returns of 14% to 15%, with a portfolio mix of approximately two-thirds in senior secured facilities, 15% in second-lien loans, and 15% in mezzanine debt.
SC Lowy is shifting its focus away from public securities trading and toward private credit, a move in line with global players like BlackRock and Tikehau Capital, which are also increasing exposure to the $1.7tn private debt market.
“We continue to see good opportunities in Korea and India, followed by Australia, Hong Kong, Singapore, and select markets in Southeast Asia,” Lee said in an interview.
